Apple Car, cloaked in mystery, could power Apple stock

Rumors that Apple plans to enter the electric vehicle market have circulated for years and have been gaining momentum as of late. The debut of an “Apple Car” could power Apple stock to new heights.

Apple Car, cloaked in mystery, could power Apple stock

Patrick Seitz for Investor’s Business Daily:

The speculation is sparking the imagination of both investors and consumers, who wonder if the Apple car will be something revolutionary or just a me-too electric vehicle to compete with the likes of Tesla.

MacDailyNews Take: No. Apple’s doesn’t do “me-too.” That’s not how Steve Jobs designed the company to work.

Apple is working on actual vehicles, not just some “vehicleOS” they’d license out to others (which was always a stupid proposition, as anyone who’s studied how Apple works for more than 3 minutes knows implicitly).MacDailyNews, August 28, 2018

I’ve always wanted to own and control the primary technology in everything we do.Steve Jobs, October 12, 2004

As we wrote back in March 2015: “When Apple enters markets, it’s because they can bring something(s) so unique to the table that significant disruption is inevitable.”

When Apple looks at what categories to enter, we ask these kinds of questions: What are the primary technologies behind this? What do we bring? Can we make a significant contribution to society with this? If we can’t, and if we can’t own the key technologies, we don’t do it. That philosophy comes directly from [Steve Jobs] and it still very much permeates the place. I hope that it always will.Apple CEO Tim Cook, March 18, 2015

The stakes could be enormous for Apple stock. An Apple car would allow the company to target a market exponentially larger than phones. Global auto sales totaled $2.55 trillion in 2020, vs. $420 billion for the smartphone market. An electric car also would fit with the company’s environmentally friendly image.

Speculation that Apple would build a car shifted into high gear in December when Reuters reported that the company was planning to roll out a passenger vehicle in 2024. The report said Apple has developed “breakthrough battery technology” with designs that could “radically” reduce the cost of batteries and increase the vehicle’s range…

Don’t expect the Apple car to have a steering wheel, Morgan Stanley automotive analyst Adam Jonas said in a recent report to clients.

“We have a hard time imagining Apple entering the automotive market with a vehicle design that involves human intervention in the driving process,” Jonas said. “An Apple car with a steering wheel is like an iPhone with physical buttons and a coiled rubber cord connected to a wall.”

MacDailyNews Take: Wrong.

Apple Car will have a steering wheel (and other human controls like brakes, etc.) because Apple will want people to actually buy them. — MacDailyNews, February 5, 2021

When Apple will come out with an electric vehicle is a moving target. Noted Apple stock analyst Ming-Chi Kuo of TF International Securities believes the earliest that Apple could launch a car would be 2025. And it would be on a “tight schedule” to meet that launch time frame, he says.

Other reports say Apple is targeting 2024, but many analysts say it could be anywhere from five to 10 years away.

MacDailyNews Take: Apple stock won’t move on “Apple Car” until some much more concrete information than we’ve seen up ’til now appears.

10 Comments

  1. Not necessarily disagreeing with MDN. Autonomous technology is not ready yet, and Apple is expert at creating products people obsess over using hands-on and owning.

    But there is another go-to-market approach…

    Most of the value in cars is in the miles and not the metal. (Most cars spend 90% of their time doing nothing.)

    Autonomous cars as-a-service would unlock that value. As a service, Apple might receive several hundred thousand dollars per car, when no consumer would spend that.

    Autonomous cars on their own make traffic worse (more trips without passengers, more trips with non-drivers). Autonomous cars as-a-service can overcome that factor.

    With this approach, Apple could capture a much larger share of the mobility market with many fewer cars, overcoming the scale-up issue Tesla is drowning in. It would take years for Apple to make enough cars if they’re selling them; but that same small number of cars could capture a larger share of the mobility market if they’re pressed into service 24/7 on the streets of the world’s big cities.

    As a cash-rich company, Apple can afford to bankroll the capital cost of all of these vehicles in exchange for their service revenue (others, like Tesla, simply couldn’t afford to do something like that — they need the sales revenue today).

    With an installed base of more than a billion active phones, in the hands of the world’s wealthiest and most mobile individuals, they could rapidly capture market share. (If an Apple Car icon showed up on my phone, I’d press it just to see Apple’s beautiful ride show up at my curb.)

    1. https://www.reuters.com/business/autos-transportation/us-safety-board-probing-deadly-tesla-crash-fire-2021-04-19/

      If you don’t think there will be repercussions for deadly events when these driverless vehicles crash, you would be mistaken. Here’s just the latest in a long string of fatalities.

      I know what you’re thinking. Statistically, Autonomous test cars have fewer fatalities per mile than human-driven cars. The flaw in that thinking is twofold:

      1) autonomous test cars are by law supposed to be operated with a human backup, and the companies that operate them don’t share how many near misses involved human intervention

      2) the autonomous test vehicles are maintained and operated more like a laboratory test than in truly uncontrolled real world conditions.

      3) Bonus point: the manufacturer of what is essentially a lithium ion bomb on the road will never be able to completely avoid all liability for the crashes that will occur.

  2. I get electric cars, but don’t get autonomous driving cars. Maybe on freeways, but I live in the UK and a huge % of our roads would need massive upgrades to make them friendly to autonomous vehicles. Same goes for many other countries.
    In other news, a Tesla car was under self drive mode and caused a crash when it swerved to avoid a dog on the sidewalk.

    1. Right. Autonomous driving cars probably not feasible.

      It is ridiculous to think governments world wide will spend trillions upon trillions of dollars to upgrade every road in sight for lazy drivers that don’t want to turn a steering wheel or brake a vehicle. They don’t update the old infrastructure as it is now in the USA. Most likely nothing in return for government taxpayer monies spent for a free ride.

      Additionally, don’t see its possible to program vehicles to react to every possible road obstacle that may appear overnight after a weather event, during construction or an accident on the spot (all different) that blocks the path with vehicles and debris. We all know reliability of satellite TV signals during a heavy rain or a snowstorm.

      I could be wrong, just doubt it’s feasible. The human brain is updating its software every second day and night.

      For fans of autonomous vehicles, you can get your fantasy fix watching syfy movie “Minority Report” with Tom Cruise. He jumps roofs on a vertical stack of vehicles trying to escape and another cool scene where the car parks outside their Jetsons like apartment, car door opens to the living room…

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.